Shares of Butterfly Gandhimathi Appliances rose as much as 10.9% on Thursday after the home appliances maker reported an 18.7% year-on-year increase in net profit to ₹20 crore for the second quarter of FY27. Revenue rose 13.1% during the period.
The stock closed 8.58% higher at ₹617 on the NSE. It has gained 5.1% over the past month but remains down 4.7% so far this year.
Revenue from operations increased to ₹331 crore in the September quarter from ₹293 crore in the year-ago period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 13.3% year-on-year to ₹32 crore from ₹28 crore. The EBITDA margin remained unchanged at 9.5%.
Commodity inflation weighs on margins
Butterfly Gandhimathi Appliances said revenue growth, excluding Crompton manufacturing, stood at 15.9% year-on-year.
However, its material margin — the difference between revenue and material costs, expressed as a percentage of revenue — contracted by 160 basis points to 36.2%, primarily due to commodity inflation.
The company said its Idea First series continued to gain consumer acceptance, with the range accounting for a growing share of its business.
What management said
Swetha Sagar, manager and chief business officer at Butterfly Gandhimathi Appliances, said the company had sustained double-digit revenue growth, supported by broad-based gains across product categories and sales channels.
The company continues to invest in brand-building across offline and online platforms through media spending, targeted trade promotions and influencer-led campaigns.
Sagar said the Onam season marked a strong start to the festive period. The company aims to sustain growth through brand investments, consumer-focused innovation, premiumisation and wider geographical reach.